I want to convert music form the mod archive to mp3 so i can listen to it on my mp3 player. Since there are a lot of songs I want to use a setting where the mp3 file sounds the same (same quality) but at the lowest file size as possible. Can anyone recommend a setting?

As mp3 is a lossy format, you won't hear exactly the same sound. A fair quality would be 128kbit, Stereo (a standard since years, anything less doesn't sound that good), but if you want a better quality, you should even chose 160 or 192 kbit. I do not recommend Variable bit rate (VBR), as it saves some space but the quality is changing all the time. If you have mono MODs, you can save them as mono mp3s with half the bitrate, e.g. 64kbit / mono instead of 128 kbit / stereo. If your mp3 player is able to handle the OGG format, this would be even better. The format is less lossy, that means that you can save your files at even lower bitrates, what resluts in smaller files.

Well, yes Saga. But he strictly said he needed it in MP3 for his MP3 player. To get 128kb/sec you probably need an encoder as the LAME library which is easy to download doing a lil google search. Standard original MP3 does not seem to allow for more than 56kb/sec stereo (and 32kb/sec mono). And as far as I can tell, that may be just enough for your needs as it provides a fair quality (although if you listen closelly, you can hear there's some high and low frequency ranges missing, but it's not a big deal).

ModPlug supports MP3 convertions. I don't know about some other trackers, but it's possible you can save as a WAVE and then convert to MP3 using either the common sound recorder (you know, standard Windows software) or any other software you prefer that can convert WAVE to MP3.

Standard original MP3 does not seem to allow for more than 56kb/sec stereo

That's not true. The "standard" is Fraunhofer codec, that's right. But the so-called "Advanced" codec is just a downgraded version of the original codec which supported higher bitrates, just like LAME. There are even some cracked versions around which support higher bitrates than 320kbit! And well, I personally can't recommend the "advanced" codec. The real mininum I can listen to is 96kbit, but that' probably only me.So you should get the free mp3 encoder LAME and try this one, and throw the "advanced" Fraunhofer codec away;)